Ian Cowie: tech turmoil, but these two trusts give me confidence

Amid short-term tech pains, our columnist is finding comfort in long-term gains from two of his holdings that offer exposure to the sector.

5th November 2026 13:18

by Ian Cowie from interactive investor

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Midterm US election results caused share prices to surge sharply higher around the world this week on hopes of an imminent end to tit-for-tat tariffs, war in the Middle East and high energy prices.

But Mr Market may be getting ahead of events because the unpredictable President Donald Trump still has 26 months in office and even a so-called lame duck leader could prove dangerous.

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Nowhere is the uncertainty and share price volatility more extreme than in the technology sector, which had enjoyed a multi-year bull run before recent doubts prompted a bear squeeze sell-off. Fears that artificial intelligence (AI) will leave investors looking really stupid wiped $900 billion (£670 billion) off big technology shares last week.

Whether you believe we are living through a digital version of the Industrial Revolution or a replay of the Emperor’s New Clothes is the biggest question facing investors today. Dread of capital destruction offsets fear of missing out.

Fortunately, investment trust shareholders don’t need to answer this conundrum directly because many of us already have indirect exposure to “Big Tech” businesses via our pooled funds.

For example, that’s how my shareholding in Scottish Mortgage Ord (LSE:SMT) enabled me to fudge the Space Exploration Technologies Corp Class A (NASDAQ:SPCX) $1,800 billion flotation question in June. Given what has happened since, I am jolly glad it did so.

SpaceX floated at $135 per share and, as the index-tracking funds piled in, immediately soared to $225 before collapsing to $105 in August and trades at $135 today. Phew. This extraterrestrial conglomerate remains an eclectic mix of the world’s most exciting business and a load of over-priced rubbish.

On the one hand, there is Starlink and its 11,200 satellites currently operational in orbit that might one day replace every conventional internet service provider (ISP) on this planet. On the other hand, there is X - or Twitter, as was - where strangers insult each other online, free of charge, but which Musk bought for $44 billion when he was compelled by the Delaware Court of Chancery to honour his promise to pay $54.20 per share.

That digital rag-bag of diverse assets, good and bad, comprises 18% of the net asset value (NAV) of Scottish Mortgage, which is quite enough SpaceX exposure for me. With similar high-profile technology initial public offers (IPOs) imminent, this small shareholder continues to take comfort from the tried-and-tested skills of Scottish Mortgage’s lead manager Tom Slater, who has been at the helm since 2009.

But it’s been a bumpy ride. Scottish Mortgage is the top fund in the Association of Investment Companies (AIC) ‘Global’ sector over the last year and decade but ranks second from bottom over five years out of a universe of 10. Over the short, medium and long term, this £15.5 billion fund delivered total returns of 31%, minus 0.2% and an eye-stretching 403% respectively.

Taiwan Semiconductor Manufacturing Co Ltd ADR (NYSE:TSM), the biggest microchip-maker in the world, its Dutch rival ASML Holding NV (EURONEXT:ASML), the American graphics processing unit (GPU)-maker, NVIDIA Corp (NASDAQ:NVDA), plus the South American online supermarket, MercadoLibre Inc (NASDAQ:MELI) , are among Scottish Mortgage’s other top 10 assets.

As someone who wouldn’t know one end of a GPU from another, I am happy to pay annual charges of 0.33% for professionally managed exposure to such exciting potential for wealth creation.

Similarly, the £6.4 billion investment trust Polar Capital Technology Ord (LSE:PCT) is another future-facing fund with an impressive track record. It sits at the top of the AIC’s ‘Technology’ sector over the last year and five years, ranking second over the decade, with total returns of 23%, 119% and 658%.

I am delighted to have been a PCT shareholder for more than a decade, having transferred these shares from a paper-based broker in 2013 when they were trading at 43p, allowing for a subsequent 10-for-one split. They cost 576p today and, after several rounds of profit-taking over the years, sit just outside my top 10 holdings.

Underlying assets include Nvidia, TSMC, Microsoft Corp (NASDAQ:MSFT) and the iPhone-maker Apple Inc (NASDAQ:AAPL), which happens to be the most valuable asset in my “forever fund” and, er, a core holding. Pip, pip!

Once again, I am happy to pay annual charges of 0.69% for this fund, which will celebrate 30 years since launch next month and where the very shrewd manager, Ben Rogoff, has been in charge for 20 years.

Both are remarkable anniversaries. But the past is not necessarily a guide to the future. Even so, such impressive track records - at Polar Capital Technology and Scottish Mortgage - give this small shareholder some confidence at a time of extreme uncertainty.

Ian Cowie is a freelance contributor and not a direct employee of interactive investor.

Ian Cowie is a shareholder in Apple (AAPL), Microsoft (MSFT), Polar Capital Technology (PCT) and Scottish Mortgage (SMT) as part of a globally diversified portfolio of investment trusts and other shares. For more information, see iancowie.co.uk

These articles are provided for information purposes only. Occasionally, an opinion about whether to buy or sell a specific investment may be provided by third parties. The content is not intended to be a personal recommendation to buy or sell any financial instrument or product, or to adopt any investment strategy as it is not provided based on an assessment of your investing knowledge and experience, your financial situation or your investment objectives. The value of your investments, and the income derived from them, may go down as well as up. You may not get back all the money that you invest. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.

Full performance can be found on the company or index summary page on the interactive investor website. Simply click on the company's or index name highlighted in the article.

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